Advance Payment of Employer Credits
2020 – 07/17 Did your company file for COVID-19-related employer tax credits and experience delays in the processing of Form 7200, “Advance Payment of Employer Credits Due to COVID-19?” If so, you’ll soon be hearing from the IRS. Form 7200 is used by qualified employers to request an advance payment of the CARES Act’s employee retention credit or the Families First Coronavirus Response Act’s credits that an employer claims on employment tax returns. A letter from the IRS is informing employers if the IRS either rejected Form 7200 or made a change to the requested advance payment amount due to a computation error. The letter will explain the reason for the rejection or list the new payment amount.